The World Wide Web (“web”) has evolved from first generation web systems that simply provided information to client computers over the Internet through a web browser program to second generation systems using application servers that provide dynamic, personalized information and powerful back-end transaction processing.
A great number of commercial applications become adapted to on-line systems, thus establishing a base of many different types of electronic commerce or “e-commerce” transactions. Among the various adaptations of classical commercial transactions that have become adapted to online implementations is the area of financial loans. The loan application process is often a complicated and confusing process for average borrowers.
There are a great many different types of loans available depending upon the type of loan required, such as personal loans, home mortgages, business lines of credit, and so on. There are also many different variables or negotiable terms associated with each loan, such as interest rate, loan period, processing fees, and the like. In most cases, a detailed profile of the borrower is required because factors such as age, employment, financial history, credit rating and so on, can have a great deal of impact on the cost and ability to qualify for a loan. Moreover, loans are available from many different sources, such as traditional banks to private and commercial money lenders.
Thus, the process of applying for and obtaining a loan can be complicated and time consuming because of the great number of variables regarding the loan, the lender, and the borrower, as well as the number of parties involved in the loan process. Because of the distributed, information-intensive nature of the loan industry, a class of loan brokers, also referred to as “loan originators,” has emerged to aid borrowers in finding and obtaining the proper loan. The advent of loan originators has served to provide an important interface between borrowers and the various lenders and underwriters who might have an appropriate loan product.
Computer-based loan brokers typically use sophisticated programs, referred to as Loan Origination Software (LOS) systems, to automate the loan application process and fulfillment process. In a traditional loan application scenario, a borrower approaches a loan broker to find an appropriate loan. The broker takes the application information from the borrower and compiles a traditional loan application. Some type of loans provide standardized formats for the loan application information. For example, mortgage loan applicants and processors typically use a uniform mortgage application form to provide what is referred to as “1003” data, corresponding to FNMA (Fannie Mae) form number 1003. The loan broker then passes the application information to various other parties, such as loan underwriters, lenders, and settlement service vendors.
The widespread use of the Internet has generally led loan brokers to recognize and accept the Internet and computerized processes as viable and promising vehicles with which to conduct business. Traditional loan processing involves a great deal of customer support, data input, and expedited mailing and delivery of physical documents. These factors present areas of great cost and potential problems in the loan application, processing, and delivery transaction. Although most present loan originators have implemented software systems, such as LOS programs, to automate their processes, typical loan origination software systems do not provide a comprehensive interface between loan brokers and lenders, and other third parties, such as settlement services. Furthermore, most present loan origination systems do not provide comprehensive form and document completion processes that truly automates the loan application process and minimizes the errors associated with individually completing all of the separate forms required in a typical loan transaction.
What is needed, therefore, is a loan processing and submission system that provides comprehensive completion, control and submission of forms and documents associated with a loan application.
What is further needed is a loan processing system that provides a comprehensive network-based interface between a broker and a plurality of lenders and other third parties for fulfillment of a loan application on behalf of a borrower.